2019 (5) TMI 1755 - Tri - Insolvency and Bankruptcy

Liquidation Order for M/s. BKR Hotels and Resorts: Resolution Plans Rejected, Liquidator Appointed

IN RE : R. Venkatakrishnan, Resolution Professional, BKR Hotels And Resorts P. Ltd.,

The National Company Law Tribunal - Chennai Bench ordered the liquidation of M/s. BKR Hotels and Resorts P. Ltd. following the rejection of resolution ... Liquidation of business of Corporate Debtor - section 33 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- It is stated that the resolution professional has not received any viable and feasible resolution plan from the resolution applicants in respect of the corporate debtor and therefore, the CoC has decided to recommend for liquidation of the corporate debtor. The CoC vide electronic voting conducted between February 22, 2019 10.30 a.m. and February 23, 2019 10.30 a.m., decided to liquidate the business of the corporate debtor with a vote of 95.90 per cent - Authority orders the liquidation of the corporate debtor, viz., M/s. BKR Hotels and Resorts P. Ltd., which shall be conducted in the man ner as laid down in Chapter III of Part II of the I and B Code, 2016. Issues:Liquidation of corporate debtor under Insolvency and Bankruptcy Code, 2016Detailed Analysis:Issue 1: Liquidation ApplicationThe Resolution Professional filed M. A. No. 232 of 2019 under section 33 of the Insolvency and Bankruptcy Code, 2016 seeking an order to liquidate the corporate debtor, M/s. BKR Hotels and Resorts P. Ltd.Issue 2: Background and CIRP ProcessThe Corporate Insolvency Resolution Process (CIRP) was initiated against the corporate debtor by the Indian Bank under section 7 of the I and B Code, 2016. The Resolution Professional took over management, invited claims from creditors, and constituted the Committee of Creditors (CoC).Issue 3: Resolution Plan EvaluationSeveral resolution applicants expressed interest, but only three submitted plans. The CoC meetings rejected plans for non-compliance with the I and B Code, 2016. Settlement proposals were considered but did not materialize.Issue 4: Decision for LiquidationWith no viable resolution plan received, the CoC decided to recommend liquidation of the corporate debtor. An electronic voting process resulted in a 95.90% vote in favor of liquidation.Issue 5: Order for LiquidationThe Tribunal, in exercise of powers under section 33 of the I and B Code, 2016, ordered the liquidation of M/s. BKR Hotels and Resorts P. Ltd. The Resolution Professional was appointed as the company liquidator, and the moratorium declared under section 14 ceased to have effect.Issue 6: Legal Proceedings and Company OperationsNo legal proceedings could be initiated against the corporate debtor, except with the liquidator's approval. The order discharged officers and vested powers with the company liquidator. Employees were directed to cooperate, and the liquidator could charge fees as per regulations.Issue 7: Compliance and Disposal of ApplicationThe order required sending copies to relevant authorities for compliance. The liquidation proceedings against the corporate debtor were initiated based on the Resolution Professional's application under section 33 of the I and B Code, 2016.This detailed analysis covers the key aspects of the judgment concerning the liquidation of the corporate debtor under the Insolvency and Bankruptcy Code, 2016, as decided by the National Company Law Tribunal — Chennai Bench.